In Problem 3, the Production Function Is F(L, M)

question 11

Multiple Choice

In Problem 3, the production function is f(L, M) , where L is the number of units of labor and M is the number of machines used. If the cost of labor is $100 per unit and the cost of machines is $16 per unit, then the total cost of producing 7 units of output will be

• A) $140.
• B) $406.
• C) $112.
• D) $280.
• E) None of the above.

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Definitions:

Stimulus

Any object or event that elicits a sensory or behavioral response in an organism.

Behavior

The actions or reactions of an organism, often in relation to the environment, including the mannerisms and actions of individuals.

Subjective Terms

Refers to language or descriptions that are influenced by personal feelings, opinions, or interpretations rather than objective facts.

Self-fulfilling Prophecy

A prediction that directly or indirectly causes itself to become true due to positive feedback between belief and behavior.